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US dollar higher amid talk of more easing from ECB, BOE

The dollar pushed higher against the pound and euro on Tuesday, amid more speculation of further easing from the Bank of England and the European Central Bank.

PHOTO: BLOOMBERG NEWS

[NEW YORK] The dollar pushed higher against the pound and euro on Tuesday, amid more speculation of further easing from the Bank of England and the European Central Bank.

A week after the BOE held off on cutting rates in the wake of the vote to pull out of the European Union, on Tuesday new British finance minister Philip Hammond declared the bank has to respond to the shock.

"The initial response to this kind of shock must be a monetary response by the Bank of England," Chancellor of the Exchequer Hammond told lawmakers at the House of Commons.

"The governor, in announcing that interest rates were not to be lowered last week, did make it clear that the bank is developing a monetary package which it would announce in due course." The pound lost 1.1 per cent against the dollar, falling to US$1.3101.